UK industrial REIT LondonMetric Property has completed on £780 mln (€900 mln) of debt refinancings as part of its strategy to reduce borrowing costs.
The company has announced that further to disclosing on 25 March that it had priced a £380 mln private debt placement, it has now completed the placement, which has a blended maturity of 11.1 years and a blended coupon of 2.27%.
At the same time, LondonMetric has inked two new revolving credit facilities (RCFs) totalling £400 mln. These comprise a £175 mln facility for a five year term with two plus one year options with Wells Fargo; and a £225 mln facility for a three year term with two plus one year options with NatWest, Barclays, HSBC and Santander.
Taken together with the placement, the company has completed £780 mln of new debt, replacing the existing £444 mln RCF due to mature in April 2022 and two bilateral loans with Wells Fargo of £75 mln and HSBC of £75 mln.
The company will also repay its £130 mln secured debt facility with Helaba. Overall, the refinancings increase the company's loan maturity by four years to 8.2 years and the average cost of debt on a drawn basis will be 2.6%.
Martin McGann, finance director of LondonMetric commented: 'We have undertaken very significant refinancings of our debt position and are delighted with the support shown by our RCF lenders and the increased diversification of our private placement investors in North America and the UK.
'These refinancings lengthen our debt maturity and reduce our overall cost of borrowing.'
As disclosed previously, a £50 mln tranche of the placement is subject to a green framework under which spend is allocated to highly sustainable buildings. These green notes are priced two basis points inside the equivalent non green notes.
